From e07a56a7692e7c7f2383c9d1a3ac9e0f5065eeab Mon Sep 17 00:00:00 2001 From: Peter Conrad Date: Sun, 13 Nov 2016 17:20:51 +0100 Subject: [PATCH] Added global settlement for dependent MPAs --- bsip-0017.md | 24 ++++++++++++++++++++++++ 1 file changed, 24 insertions(+) diff --git a/bsip-0017.md b/bsip-0017.md index 307cb46..393f3c8 100644 --- a/bsip-0017.md +++ b/bsip-0017.md @@ -250,6 +250,30 @@ event on an asset and the revival of that same asset. The parameter will be modifiable by the committee and defaults to 4 weeks (28 days). See discussion below. +### Dependent MPAs + +If at the time of global settlement an MPA exists that is backed by the settled +asset, that dependent MPA is also settled. + +Additionally, it will be forbidden to create assets backed by bitAssets that +have a settlement_price. + +The reason for this is that after global settlement the settled asset is no +longer pegged to its "real" counterpart. For example, suppose that an asset +bitGOLD_USD exists that is supposed to represent the value of an amount of gold +and is backed by an amount of bitUSD (which is supposed to be pegged to the +US-Dollar). After bitUSD has suffered a black swan, bitUSD is no longer pegged +to USD. Instead, bitUSD represents a fixed amount of BTS, defined by the +settlement_price. + +Supposedly, the price feed for bitGOLD_USD will continue to follow the gold +price in terms of US-Dollars, which will quickly deviate from the actual worth +of bitGOLD_USD, which is really defined by the BTS price at that time. This will +lead to confusion and anger among market participants. It is therefore +reasonable to put bitGOLD_USD into the same state of limbo as the backing USD. + +This change requires further discussion. + # Discussion ## minimum_time_before_asset_revival